Golds slip in lacklustre trade

THE JSE closed flat on Tuesday in lacklustre trade as the market looked for direction from possible US interest rate increases this year.

Local general retailers and banks gained, but gold stocks retreated.

The market was initially supported by dovish views expressed by US Federal Reserve’s (Fed’s) federal open market committee member Lael Brainard, who said still-muted inflation and uncertain developments ahead “counsels prudence in the removal of policy accommodation”.

However, the support was brief after JPMorgan Chase’s CEO Jamie Dimon said he would rather see the Fed raise rates sooner than later.

Global investors now await the federal open market committee’s interest rate decision on September 21.

Meanwhile, better than expected data on the local current account, released earlier in the day, failed to support the rand, which had weakened 1.76% to R14.48/$, by late trade, on renewed dollar strength against the yen and the euro.

The current account deficit fell to 3.1% of GDP in the second quarter, better than the market consensus of 3.6% and down from a revised 5.3% (previously 5%) in the first quarter.

The all share closed 0.01% higher at 52,806 points with the blue-chip top 40 losing 0.04%. General retailers gained 2.25%, banks added 1.85% and financials firmed 0.63%. Industrials ended the day 0.15% higher. The gold index shed 1.27% and resources dropped 1.12%. South African listed property softened 0.16%.

At 5.56pm, the Dow Jones industrial average was 1.42% lower.

Sasol (SOL) added 1.47% to R376.20 after reporting annual results to end-June on Monday.

Headline earnings declined 17% to R41.40 per share.

Among property stocks Attacq (ATT) shed 0.29% to R17.30.

It earlier reported total assets increased by 18.6% to R27.6bn in the year to end-June.

Comair (COM) jumped 4.55% to R3.45 after reporting that its net profit had fallen 12% to R193m, while revenue edged up 1%.

Pharmaceutical group Aspen (APN) was 0.16% higher at R336. The group is set to buy a portfolio of GlaxoSmithKline’s anaesthetics drugs for £280m.

Bonds were stronger despite the weaker rand.

At 5.42pm, the benchmark R186 bond was bid and offered at 8.710% from 8.730% previously.

South African futures tracked the Dow lower. At 6.01pm, the local neardated top 40 Alsi futures index was down 0.28% to 46,160 points, with 125,105 contracts traded from 145,265 contracts traded on Monday. With Madeleine van Niekerk